Horizontal or vertical integration. Horizontal integration is the type of expansion in which one company acquires or set merger with other company or companies working at the similar production level. Horizontal and vertical integrations are strategies used by businesses in the same industry or production process. Horizontal vs vertical integration key differences. Horizontal integration involves minimizing competition and increasing market share by purchasing competing businesses while vertical integration involves purchasing suppliers or distributors to streamline the process and reduce the costs of bringing a product to market.
In a horizontal integration a company takes over another that operates at the. Here are the key differences between horizontal and vertical integration horizontal integration occurs between two firms which are similar in operations in terms of product and production level whereas in vertical integration the two firms to be merged operates at different stages of the supply chain. It implies the integration of various entities engaged in different stages of the distribution chain. Vertical vs horizontal integration horizontal and vertical integration are tactics that are used by firms to expand their business operations.